Appreciation and Hold Times : Marina, Cow Hollow, Pacific and Presidio Heights
December 7, 2008District 7 is one of the most sought-after areas of the City. Beautiful architecture, amazing views, shop-lined streets, and pricey homes all abound here. The neighborhoods in District 7 include the Marina, Cow Hollow, Pacific Heights, and Presidio Heights.
District 7 is home to Cow Hollow. Clearly, this Cow has been shopping there...
We were curious to see how condominiums have appreciated or depreciated over time in the district. We studied the median sales prices for condos in the district, dating back to 1995. We plotted the points on a chart to gain insight into the overall trend, and then figured out how much appreciation you would have gained/lost if you owned for X amount of time. Keep in mind that these are all based on the median sale price each year. With that said, here is a look at the data:
District 7 Neighborhoods - Median Sales Prices for Condos Over Time (click to enlarge)
Keep reading for the appreciation and hold time chart –>
What we notice from the chart above is steady increasing median values in all of the neighborhoods with the exception of Presidio Heights. The condo market in Presidio Heights is a little funny. There are some amazingly posh places ($3M plus condos) and then your “low end” million dollar properties (it’s tough to utter that phrase). There also are fewer sales in this area per annum as it is small geographic area (around 20-30 condo sales each year). Therefore, the rocky ride is probably tied to how many of the posh places sold in a given year versus the “low end” condos.
So what about those hold times and appreciation/depreciation? Basing our analysis on median sales prices, here’s a look at the chart:
Appreciation and Hold Times / District 7 Neighborhoods (click to enlarge)
Just as we suspected, if you hold for the long term in District 7, you win. In the short term, you can see that a couple neighborhoods’ median prices are down slightly, but far from a condo implosion in this part of town. We attribute this to the area’s high desirability, traditionally low supply, and an inventory pipeline that only adds a few units per year. If you want to invest in real estate, these are three key metrics to keep your eyes on.
Read more appreciation and hold time articles HERE.
